Commercial Cheque Fraud in Kuwait: Legal Risks and Penalties
Under Kuwaiti Commercial and Penal Law, writing a cheque without sufficient funds or issuing a cheque with the intent to deceive is considered a criminal offense. Article 237 of the Kuwaiti Penal Code governs this violation, supported by Law No. 32 of 1968 on Commercial Transactions.
What is Cheque Fraud?
Cheque fraud occurs when a person issues a cheque knowing that the account has insufficient funds or after closing the account. It includes altered cheques and forged signatures.
Common Scenarios
- Issuing a post-dated cheque with no intention of payment.
- Delivering cheques from closed or frozen accounts.
- Using stolen cheque books or forging details.
Legal Consequences
- Up to 3 years of imprisonment.
- Financial penalties or fines up to KD 3,000.
- Inclusion on the Central Bank’s blacklist.
Legal Advice
- Do not sign blank cheques.
- Verify available funds before issuing any cheque.
- Seek a lawyer if charged or pursuing collection.
Involved in a cheque-related dispute?
Contact Attorney Mishari Obaid Al-Anzi – Specialist in commercial and fraud law:
+965 97585500